14. The multiplier for a futures contract on a stock market index is $50. The maturity of the contract is 1 year the current level of the index is 1.800 and the risk free interest rate is 5% per month. The dividend yield on the index is 0.2% per month. Suppose that after 1 month the stock index is at 1820.

A Find the cash flow from the mark to market proceeds on the contract. Assume that the parity condition always holds exactly.

B Find the holding period return if the initial margin on the contract is $5,000.